The general statutory requirements for an I.R.C Section 1031 tax-deferred exchange are as follows:
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Both the property surrendered and the property received must be held for productive sue in a trade or business, or for investment
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The property surrendered and the property received must be of "like-kind"
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The exchange must be a reciprocal transfer of properties as distinguished from a sale and repurchase
There were other "rules" to come from the Final Regulations, such as Identification Period (45 Days), Exchange Period (180 Days), Form of Identification, Identification Rules, and the rule regarding the fact that you must acquire substantially what you have identified. There are other rules regarding restrictions on the funds from the exchange of the relinquished property. We will address these other rules as we proceed.